Business, 19.08.2020 01:01 TheViperMlg23676

Project Y costs $50,000, its expected cash inflows are as follows-- year 1: $19,000; year 2: $20,000; year 3: $18,000; year 4: $19,000; year 5 $20,000; year 6: $17,000, and its WACC is 7%. a. What is the project's NPV?
b. What is the project's IRR?
c. What is the project's MIRR?
d. What is the project's Payback Period?
e. What is the project's Discounted Payback?

Answers: 1

Show answers

Answers

Answer from: WhiteWinterRose

a. $40,001.70

b. 30.19 %

c. 18,01% .

d. 2 years and 7 months

e. 3 years

Explanation:

Calculation of NPV using a financial calculator :

-$50,000 CFj

$19,000 CFj

$20,000 CFj

$18,000 CFj

$19,000 CFj

$20,000 CFj

$17,000 CFj

i/yr 7%

Shift NPV $40,001.70

Calculation of IRR using a financial calculator :

-$50,000 CFj

$19,000 CFj

$20,000 CFj

$18,000 CFj

$19,000 CFj

$20,000 CFj

$17,000 CFj

Shift IRR 30.19 %

Calculation of MIIR :

The First Step is to Calculate the Terminal Value at end of year 6.

Terminal Value (FV) = Sum of (PV x (1 + r) ^ 6 - n)

=$19,000 x (1.07) ^ 5 + $20,000 x (1.07) ^ 4 + $18,000 x (1.07) ^ 3 + $19,000 x (1.07) ^ 2 + $20,000 x (1.07) ^ 1 + $17,000 x (1.07) ^ 0

= $26,648.48 + $26,215.92 + $22,050.77 + $21,753.10 + $21,400 + $17,000

= $135,068.27

The Next Step is to Calculate the MIRR using a Financial Calculator :

-$50,000CFj

0 CFj

$135,068.27 CFj

Shift IRR/Yr18,01%

Therefore, the MIRR is 18,01% .

Calculation of the Payback Period :

$50,000 = Year 1 ($19,000) + Year 2 ($20,000) + $11,000 / $18,000

= 2 years and 7 months

Calculation of the project's Discounted Payback :

$50,000 = $19,000 / (1.07)^1 + $20,000 / (1.07)^2 + $18,000/ (1.07)^3 + $19,000/ (1.07)^4

= Year 1 ($17,757.01) + Year 2 ($17,468.77) + Year 3 ($14,693.36) + $80.83 / $14,495

= 3 years

Answer from: Quest

a. money supply

have a good day

Answer from: Quest

answer; purpose nondisclosure;

Another question on Business

Business, 22.06.2019 01:00

The following account balances at the beginning of january were selected from the general ledger of fresh bagel manufacturingâ€‹ company: work in process inventory â€‹$0 raw materials inventory $ 29 comma 000 finished goods inventory $ 40 comma 900 additionalâ€‹ data: 1. actual manufacturing overhead for january amounted to $ 62 comma 600. 2. total direct labor cost for january was $ 63 comma 600. 3. the predetermined manufacturing overhead rate is based on direct labor cost. the budget for the year called for $ 255 comma 000 of direct labor cost and $ 382 comma 500 of manufacturing overhead costs. 4. the only job unfinished on january 31 was job no.â€‹ 151, for which total direct labor charges were $ 5 comma 700 â€‹(1 comma 000 direct laborâ€‹ hours) and total direct material charges were $ 14 comma 400. 5. cost of direct materials placed in production during january totaled $ 123 comma 300. there were no indirect material requisitions during january. 6. january 31 balance in raw materials inventory was $ 35 comma 200. 7. finished goods inventory balance on january 31 was $ 35 comma 400. what is the cost of goods manufactured forâ€‹ january

Answers: 1

Answer

Business, 22.06.2019 19:30

Dollar shave club is an ecommerce start-up that delivers razors to its subscribers by mail. by doing this, dollar shave club is using a(n) to disrupt an existing market.a. innovation ecosystem b. architectural innovation c. business model innovation d. incremental innovation

Answers: 2

Answer

Business, 23.06.2019 02:50

Marcus nurseries inc.'s 2005 balance sheet showed total common equity of $2,050,000, which included $1,750,000 of retained earnings. the company had 100,000 shares of stock outstanding which sold at a price of $57.25 per share. if the firm had net income of $250,000 in 2006 and paid out $100,000 as dividends, what would its book value per share be at the end of 2006, assuming that it neither issued nor retired any common stock?

Answers: 1

Answer

Business, 23.06.2019 03:10

Identify whether each of the following statements best illustrates the concept of consumer surplus, producer surplus, or neither. statement consumer surplus producer surplus neither a local store was having a sale on textbooks, so i bought a used textbook for my brother. i sold a watch for $61, even though i was willing to go as low as $55 in order to sell it. even though i was willing to pay up to $116 for a used laptop, i bought a used laptop for only $110.

Answers: 1

Answer

You know the right answer?

Project Y costs $50,000, its expected cash inflows are as follows-- year 1: $19,000; year 2: $20,000...

Questions